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2009 RETIREE LUNCHEON

MARCH 23, 2009

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2009 Benefit Plan Update

Medical Plan Changes– Non-network Option and HDHP Option now

have unlimited Preventive Care Benefit• physician must file with Medicare first

– Full Time Student Status no longer required for Dependent Children up to age 25–must satisfy eligibility plan provisions for

dependent child

– Added Medicare Crossover service

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2009 Benefit Plan Update (continued)

Dental Plan Changes– Increased benefit coverage for composite

fillings– allows a benefit composite fillings

regardless of tooth location

– Salaried Retirees will now have access to continue Dental coverage as Post-65 Retiree– same coverage offering as Hourly program

– Retirees pay 100% of the contribution

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2009 Benefit Plan Update (continued)

Vision Program– No Plan Design Changes – Full Time Student Status no longer

required for Dependent Children up to age 25–must satisfy eligibility plan provisions

for dependent child

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UPDATE ON COORDINATION OF

BENEFITS

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Medicare Crossover Highlights of Medicare Crossover• Medicare Cross-Over is the process by which

Medicare automatically forwards medical claims to UnitedHealthcare for processing

• Based on agreements with the Medicare Part B and Durable Medical Equipment (DME) claim processors

• UHC will be able to keep out-of-pocket balance current

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• Medicare Cross-Over is available to any Medicare-primary CITGO enrollee.

• It is available to both enrollees and their Medicare-eligible dependents, if they do not have group coverage from another source.

• Medicare pays first, then claims are submitted electronically to UnitedHealthcare.

• Process eliminates provider submission of claim to UHC after Medicare processing

Medicare Crossover (continued)

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Coordination of BenefitsMedicare Part D Prescription Drug Plan(continued)

• If you enroll in Medicare Part D you and your covered dependents will no longer be eligible to participate in the CITGO Medical Plan

• The CITGO Prescription Drug program meets the requirement for creditable coverage

• Must be enrolled in Part A and B to be eligible for Medicare Part D

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Coordination of BenefitsPreventive Care Benefits• Preventive care benefits are now eligible

for a 100% benefit when not covered by Medicare.

• Routine screenings and immunizations are covered under the CITGO plan

• The 2009 Medicare Preventive Care benefits can be found on the Medicare website at http://www.medicare.gov/Publications/Pubs/pdf/10110.pdf

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Coordination of BenefitsPreventive Care Benefits (continued)

• Your physician must still file with Medicare for the CITGO plan to process the benefits as the secondary plan

• Filing with Medicare is required in order for the CITGO plan to process secondary benefits

• Because the CITGO plan is secondary to Medicare, the filing requirement applies even when Medicare is not going to pay a benefit

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APPENDIX2009 Retiree Health

Benefits Overview

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Retiree Medical BenefitsEligibility Requirement for Retiree

Medical

10 Years Continuous Plan Participation while in active employment AND

Meet one or more of the following:Age plus service equals 70 pointsOR• Retire under Company retirement planOR• Age 55 or older and eligible to retire from

the Pension Plan

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Retiree Medical BenefitsEligibility (continued)• Can waive and re-enroll at a future date

– Enrollment allowed at Annual Election or when you have a Qualified Change in Status

– No pre-existing condition exclusions– Enroll at Annual Election or Change in

Status• Other coverage primary • Continue to receive important and critical

benefits information you should always review.

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Retiree Medical BenefitsSpouse Eligibility • CITGO Retiree becomes Medicare eligible

before eligible spouse– Not eligible for network options– Coverage Non-Network Medical Option

• Eligible Spouse becomes Medicare eligible before CITGO retiree– Coverage for retiree remains the same– Medicare becomes primary payer for the

spouse– Medicare coordination of benefits is

applied

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Retiree Medical BenefitsSpouse Eligibility (continued)• CITGO Retiree dies before eligible spouse

– Coverage continues– Medical options depend on spouse’s

eligibility for Medicare• Eligible children

– Eligible for coverage up to age 25 – Full Time Student Status no longer

required for Dependent Children up to age 25• must satisfy eligibility plan provisions

for dependent child

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Retiree Medical Benefits when Retiree is NOT

Medicare Eligible• Same medical plan options as active

employees• CITGO is the primary plan• CITGO secondary for dependents age 65

and over• Includes same Prescription Drug Program

available to Active Employees

Retiree Medical Benefits

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Retiree Medical BenefitsRetiree Medical Benefits when Retiree is

Medicare Eligible• Medicare becomes the primary payor

– Medicare Part A – Hospital – Medicare Part B – Medical Expenses

• CITGO becomes secondary not a supplement

• CITGO Plan provides a “carve-out” benefit and does not “supplement”

• CITGO primary for < age 65 dependents• Includes full Prescription Drug Program

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Prescription Drug ProgramRetiree Coverage is Same as Active

Coverage• CITGO is the primary plan for both Pre-65

and Post-65 Retirees except when– You enroll in Medicare Part D– You are enrolled as an Active Employee

under another employer plan• Prescription drug program benefits

– not subject to deductible – not subject to annual or lifetime limits

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Prescription Drug Plan Snapshot

For Short-Term and ImmediatePrescriptions

Retail Pharmacy Program*

Up to a 31 day supply.

You pay 30% with $10 minimum a $200 maximum per prescription for Tier 1 and Tier 2.

You pay 40% with $10 minimum and a $200 maximum per prescription for Tier 3.

You pay 40% with $10 minimum and a $200 maximum per prescription for Tier 3.

For Long-Term and MaintenanceMedications

Mail-Order Program*

Up to a 90 day supply:

        $25 for Tier 1

        $50 for Tier 2

        $75 for Tier 3

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Retiree Dental BenefitsPre-65 and Post-65 Retiree Dental• Applies to Hourly and Salaried Retirees• Same as active employees

• CIGNA Preferred Provider Program (PPO)

• Retiree is responsible for 100% of the contribution for Retiree

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Dental Benefits SnapshotBenefits Covered Services Coverage - You Pay

Preventive and Diagnostic

Two oral examinations per year, routine cleaning and scaling, and X-rays.

You pay 0%

BasicFillings, extractions, oral

surgery, periodontics and endodontics

You pay 20% after calendar year deductible

Major RestorativeCrowns, bridges and

dentures You Pay 50% after calendar

year deductible

OrthodonticBraces and other

appliance therapy You Pay 50%

Deductible $50 per person per year  

Dental Maximum $1,500 per person per lifetime for orthodontia

Orthodontic Maximum $1,500 per person per lifetime for orthodontia

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Retiree Vision BenefitsUnited Healthcare Vision - SPECTERA)• Same coverage as Active Employees• Provides coverage for routine eye exam,

corrective lenses, eyeglass frames, contact lenses

• Discount available on progressive lenses• In-network benefits available after

applicable copay• Out of Network benefits available• Coverage available for your dependents

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Vision Benefits Snapshot

Benefits In-Network Covered Services You Pay

Comprehensive Vision Exam Once Every 12 months by a network optometrist or ophthalmologist

You pay $10

Materials   You pay$25Materials copay applies to the

entire purchase of eyeglasses(lenses and frames), or contactsin lieu of eyeglasses

Pair of lenses (for eyeglasses) once every 12 months for standard single, lined bifocal, lined trifocal, standard lenticular:

Frames Once every 24 months

Elective Contact Lenses (in lieu of eyeglasses)

Once every 12 months

Deductible None

Refractive Eye Surgery Discounts available from Spectera providers

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Long Term Care InsuranceAetna insures the Long Term Care • Personal care, health care and social

services– Assistance with normal activities of daily

living– Assistance if you have a serious Cognitive

disorder such as Alzheimer’s Disease• For more information:

– Call Aetna at 1-800-537-8521 or– Learn more at the website: www.aetna.com/group/citgo

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For More Information • Log on to www.hr.citgo.com to view your benefit information using your Retiree PRNR

For personal questions contact the Benefits HelpLine toll free at 1-888-443- 5707

You can also email: benefits@citgo.comAbout this MaterialThis material provides an overview of CITGO’s Retiree benefits. The benefits described are governed by legal plan documents, contracts, and insurance policies. If a conflict should occur, the legal plan documents, acts, and insurance policies will prevail.